VRX Silica has secured a strong set of regional customers for its Arrowsmith North sand project.
Across four binding offtake contracts, the company will supply a minimum of 410,000 tonnes per annum of silica sand products to four separate buyers. The total represents close to half of the project’s start-up capacity.
The contracted buyers include two well-established suppliers into the foundry industries in South Korea, a leading supplier of foundry, glassmaking, water filter media and sized dry sand in Taiwan, and a glass manufacturer supplier in the Philippines.
Arrowsmith North received environmental, works and mining proposal approvals in August and September this year.
VRX is targeting late 2026 for the beginning of production, with a final investment decision on the construction of a processing plant and associated infrastructure expected in the first half of the new year. It plans to gradually ramp up production from a starting level of approximately 1 million tonnes of silica sand per annum to more than 2 million tonnes per year, with an operating life of several decades.
VRX managing director Bruce Maluish said each of the customers were long-standing suppliers with excellent reputations across the Asian markets.
“These contracts further vindicate VRX’s strategy to ensure production of a unique Australian highly sought–after product and secure the right customers for our silica sand products for what we expect to be long–term relationships,” he said.
“We remain focused on converting the remaining offtake term sheets and new interest into binding agreements.”
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